The construction industry is undergoing a massive supply chain disruption which is leading to material shortages and high prices.
The imbalance between material shortages and a housing market on fire is disrupting the supply chain more than ever. As the construction industry returns to normalcy after a year of pandemic scenario, there’s a severe disarray in the material supply chain, the labor shortage also applies to truck drivers that move the material around the country, if there’s no drivers, then there’s no material on time, ever. Truth is, there’s never been a better time to implement technology in construction.
Role of Technology in Supply Chain Management
Solutions out there offer to streamline the way you place material orders, manage your suppliers, track inventory and manage production. Making all of your data accessible and actionable for your whole organization. Visibility and end-to-end traceability of building materials prevents losses, inefficiencies, and potential non-compliance disputes. Supply chain management requires tracking and reporting, both of which are time consuming tasks therefore, construction tech startups develop software solutions that optimize hauling supply chain efficiency.
Being able to trace materials within the supply chain allows managers to find the delays at any point along the chain, this is a highly effective method for finding new strategic approaches towards optimizing the available resources on the job site.
Construction Will Adapt, and Thrive
If you’ve been in the industry for a while, you know how true of a statement this is. Construction adapts to the circumstances and although builders are known for their resistance to technology adoption, this will become a greater priority in order to stay competitive.
In a survey performed by the consulting firm Mckinsey and Company, the technology adoption for the construction industry in 2020 accelerated almost 6 years taking a quantum leap in both organizational and industrial levels. From simple technology adoption such as internal communication to financial management, workforce management softwares and job site technology such as drones and BIMtech.
COVID-19 crisis made a mess, but it created an imperative need for solutions, transforming disruption into success and forcing builders to adopt technological strategies that are most likely to stick in the long term.